Signing a rental car insurance agreement can actually be a hassle if you fail to understand what it is your actually signing. Here are important aspects to take into considering when signing:
There are four main types of car insurance offered by rental companies. These include collision damage waiver, liability insurance, personal accident insurance and personal effects coverage. A collision damage waiver covers costs associated with damage to a car or the loss of a vehicle. This often has the highest daily price. Liability insurance is coverage for the costs associated with damage to others that is your fault. Personal accident insurance covers medical bills or emergency medical expenses. Personal effects insurance protects your belongings inside the car and is useful if you are carrying any valuables.
Rental car companies aren’t exactly your best friend. More than likely they will set you up to fail with their slew of insurance policies for customers. One should take into consideration the most important feature in any rental insurance contract: “collision damage waiver.” It is crucial that customers buy this type of insurance from the rental company because it covers the costs of damages in the event of an accident. If you do not have this insurance, or you get it from another company, the rental car provider may put the responsibility of accident costs on your shoulders. It is possible your insurance provider will cover these costs, but it is not guaranteed.
In addition, an individual must understand all the coverage terms, avoid the rental company’s roadside assistance (this is imperative because it’s the most expensive part), double-check everything before handing over the rental car, and overview the “loss of use” policies within their rental agreements as many rental companies now include them in their agreement policies.